false000115846300011584632024-10-292024-10-29
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 29, 2024
JETBLUE AIRWAYS CORPORATION
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | |
| Delaware | 000-49728 | 87-0617894 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| | | |
27-01 Queens Plaza North | Long Island City | New York | 11101 |
| (Address of principal executive offices) | (Zip Code) |
(718) 286-7900
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, $0.01 par value | JBLU | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2024 we issued a press release announcing our financial results for the third quarter ended September 30, 2024. A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
The information included under Item 2.02 of this report (including the exhibits) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 7.01 Regulation FD Disclosure.
On October 29, 2024 we provided an update for investors presenting information relating to our financial outlook for the fourth quarter ending September 30, 2024 and full year 2024, and other information regarding our business. The update and materials to be used in conjunction with the presentation are furnished herewith as Exhibit 99.2 and Exhibit 99.3 and are incorporated herein by reference.
The information included under Item 7.01 of this report (including the exhibits) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| | | | | | | | |
| | |
Exhibit
Number | | Description |
| | Press Release dated October 29, 2024 of JetBlue Airways Corporation announcing financial results for the third quarter ended September 30, 2024. |
| | Investor Update dated October 29, 2024 of JetBlue Airways Corporation. |
| | Earnings Presentation dated October 29, 2024. |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | | | | | | | | | | | | |
| | | JETBLUE AIRWAYS CORPORATION |
| | | (Registrant) |
| | | |
| Date: | October 29, 2024 | By: | /s/ Dawn Southerton |
| | | Dawn Southerton |
| | | Vice President, Controller |
| | | (Principal Accounting Officer) |
Ex 99.1 - Earnings Release
JETBLUE ANNOUNCES THIRD QUARTER 2024 RESULTS
Exceeded third quarter expectations and on-track to hit full-year targets
Progressing on roll-out and execution of JetForward strategy
NEW YORK (October 29, 2024) - JetBlue Airways Corporation (NASDAQ: JBLU) today reported its financial results for the third quarter of 2024.
"We met or exceeded all of our financial targets for the third quarter and progressed on the implementation of our JetForward strategy, sustaining the momentum we established in the second quarter," said Joanna Geraghty, JetBlue's chief executive officer. "Thanks to our crewmembers' efforts and our improved operational performance in the third quarter, we saw a double digit increase in customer satisfaction year-over-year. I am proud to lead this incredible team, particularly as they continue to deliver the JetBlue experience in the face of operational challenges like Hurricanes Helene and Milton."
"We are pleased by our positive year-over-year unit revenue performance in the third quarter. Our self-help capacity actions have helped to better match supply with demand during off-peak flying. Demand remained healthy in peak periods and close-in, and was further supported by improving competitive capacity, particularly in the Latin region, and the ramp of our revenue initiatives," said Marty St. George, JetBlue's president. "During the quarter, we announced new products and perks, such as lounges and a premium co-branded credit card, and progressed on the implementation of our reliability and network initiatives. Today, we are also announcing the upcoming enhancement of our Even More Space offering."
JetBlue to Launch EvenMore® to Meet Growing Premium Travel Demand
In support of its "products and perks customers value" priority move under JetForward, JetBlue today announced plans to evolve its Even More Space extra legroom seat into a compelling new offering with enhanced merchandising and greater visibility. The new approach is designed to boost customer consideration for JetBlue and strengthen the airline’s competitive position in the premium leisure segment.
Starting from mid-November, we plan to give Even More Space greater visibility in the booking process by offering it to customers directly on the flight search results page on jetblue.com. In addition, customers may continue to purchase Even More Space seats in the seat selection map. As we move into 2025, JetBlue will rebrand the offering EvenMore® to include new benefits and amenities with the existing extra legroom seat, creating an appealing offering for customers considering buying up for more space and perks. JetBlue plans to announce the new amenities early next year prior to the launch.
"We’re thrilled to enhance our popular extra legroom seats, giving customers even more reasons to choose JetBlue," said Marty St. George. "A key part of the EvenMore® transformation is making it easier for customers to find and book these enhanced options right from the start."
Progressing on Roll-Out and Implementation of JetForward Strategy
•Reliable & Caring Service
◦Realized benefits from initiatives to drive operational reliability, with on-time performance improving by 12 points and customer satisfaction scores improving by double digits year-over-year in 3Q.
•Best East Coast Leisure Network
◦Year-to-date, optimized over 20% of JetBlue's 2023 network, representing 15 station closures and over 50 route exits.
◦Redeployed aircraft to our strengths in leisure-focused routes originating from Northeast airports, such as Providence, Rhode Island's T.F. Green International Airport and Hartford, Connecticut's Bradley International Airport, where JetBlue is well-positioned to build scale locally.
•Products & Perks Customers Value
◦Announced enhancements to the airport experience with lounges coming to John F. Kennedy International Airport's Terminal 5, in late 2025, and Boston Logan International Airport coming soon thereafter.
◦Expanded co-brand portfolio with the announcement of a premium co-branded credit card.
◦Launched changes to Blue Basic fare, allowing customers to bring a carry-on bag onboard, making JetBlue's basic economy offering one of the industry’s best values for price-conscious customers.
•A Secure Financial Future
◦Raised ~$3.2 billion of financing to retire existing debt, prefund capital expenditures in 2024 and 2025, and support the runway of JetForward.
Third Quarter 2024 Financial Results
•Net loss for the third quarter of 2024 under U.S. Generally Accepted Accounting Principles ("GAAP") of $60 million or $0.17 loss per share. Excluding special items, adjusted net loss for the third quarter of 2024 of $54 million(1) or $0.16(1) loss per share.
•Third quarter 2024 system capacity decreased by 3.6% year-over-year.
•Operating revenue of $2.4 billion for the third quarter of 2024, an increase of 0.5% year-over-year.
•Operating expense of $2.4 billion for the third quarter of 2024, a decrease of 4.2% year-over-year.
•Operating expense per available seat mile ("CASM") for the third quarter of 2024 decreased 0.7% year-over-year.
•Operating expense, excluding special items for the third quarter of 2024, decreased 4.1%(1) year-over-year.
•Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-Fuel")(1) for the third quarter of 2024 increased 4.8%(1) year-over-year.
•Operating margin of (1.6)% for the third quarter of 2024, an increase of five points year-over-year.
•Average fuel price in the third quarter of 2024 of $2.67 per gallon.
Third Quarter 2024 Key Highlights
•Improved adjusted operating margin by ~five points year-over-year to (0.4)%.
•Delivered improved operational performance with a completion factor of ~98%, up from ~96% in 3Q23.
•Third quarter year-over-year unit revenue increased by 4.3%, underpinned by healthy demand in peak periods, improved close-in bookings, competitive capacity moderation in the Latin region and self-help capacity measures.
•Progressed on our $300 million 2024 revenue initiative target, delivering ~$275 million of incremental top-line benefit year-to-date, ~$135 million more than 2Q24.
•Executed on our cost initiatives, as evidenced by structural cost program savings of $169 million to-date and fleet modernization cost avoidance of $95 million to-date.
•Ended the quarter with ~$4.1 billion in liquidity, excluding our undrawn $600 million revolving credit facility.
•Signed an agreement alongside World Fuel Services and Valero Energy Corporation to bring first-ever ongoing supply of blended sustainable aviation fuel to New York, with initial delivery expected in 2024.
Outlook
"Our number one goal remains returning to operating profitability, and growing our unit revenue is imperative to reach operating profitability. As underlying trends from the third quarter have broadly continued into the fourth quarter so far, we expect unit revenue growth to remain positive and sequentially consistent when adjusting for the CrowdStrike benefit in the third quarter and the negative impacts of Hurricane Milton and the election in the fourth quarter. As we look to 2025, I am encouraged by the backdrop for our revenue performance to continue improving, particularly as additional JetForward initiatives begin yielding benefits," said Marty St. George.
| | | | | | | | |
| Fourth Quarter and Full Year 2024 Outlook | Estimated 4Q 2024 | Estimated FY 2024 |
| Available Seat Miles ("ASMs") Year-Over-Year | (7.0%) - (4.0%) | (4.5%) - (2.5%) |
| Revenue Year-Over-Year | (7.0%) - (3.0%) | (5.0%) - (4.0%) |
CASM Ex-Fuel (1) Year-Over-Year | 13.0% - 15.0% | 7.0% - 8.0% |
Fuel Price per Gallon (2), (3) | $2.50 - $2.65 | $2.75 - $2.80 |
| Interest Expense | $155 - $165 million | $370 - $380 million |
| | |
| Capital Expenditures | ~$450 million | ~$1.6 billion |
| | |
"In the third quarter we improved operating margin by five points versus our July expectations, driven primarily by improved revenue performance, better operational performance and lower fuel expense. We remain on track to deliver on our full-year CASM ex-Fuel target as we remain laser focused on controlling costs and sustaining our cost advantage," said Ursula Hurley, JetBlue's chief financial officer. "To help support our runway to execute on our JetForward strategy, we've also taken steps to bolster our liquidity position through strategic financing efforts. As I look to next year, I remain confident we have the right foundation to begin delivering results on our $800 - $900 million EBIT (1) target."Earnings Call Details
JetBlue will hold a conference call to discuss its quarterly earnings today, October 29, 2024 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com. The webcast replay and presentation materials will be archived on the company’s website for at least 30 days.
For further details, see the third quarter 2024 Earnings Presentation available via the internet at http://investor.jetblue.com.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San Juan. JetBlue, known for its low fares and great service, carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada and Europe. For more information and the best fares, visit jetblue.com.
Notes
(1)Non-GAAP financial measure; Note A provides a reconciliation of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure and explains the reasons management believes that presentation of these non-GAAP financial measures provides useful information to investors regarding JetBlue's financial condition and results of operations. In addition, refer to Note A for further details on non-GAAP forward-looking information.
(2)Includes fuel taxes, hedges and other fuel fees.
(3)JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its current quarter. Fuel price is based on forward curve as of October 11, 2024.
Forward-Looking Information
This Earnings Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Release are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans" "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Earnings Release include, without limitation, statements regarding our outlook and future results of operations and financial position, including our expected return to profitability, expectations with respect to our headwinds, our product offerings, and our business strategy and plans and objectives for future operations, including our JetForward initiatives. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Report, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this Report might not occur. Our forward-looking statements speak only as of the date of this Report. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| JETBLUE AIRWAYS CORPORATION |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in millions, except per share amounts) |
|
| | | | | | | | | | | | | | | | | | |
| Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | | | |
| (percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | | | | |
| OPERATING REVENUES | | | | | | | | | | | | | | | | | | |
| Passenger | $ | 2,198 | | | $ | 2,201 | | | (0.1) | | | $ | 6,518 | | | $ | 6,842 | | | (4.7) | | | | | | | | |
| Other | 167 | | | 152 | | | 9.8 | | | 484 | | | 448 | | | 8.2 | | | | | | | | |
| Total operating revenues | 2,365 | | | 2,353 | | | 0.5 | | | 7,002 | | | 7,290 | | | (3.9) | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OPERATING EXPENSES | | | | | | | | | | | | | | | | | | |
| Aircraft fuel | 584 | | | 701 | | | (16.8) | | | 1,835 | | | 2,108 | | | (12.9) | | | | | | | | |
| Salaries, wages and benefits | 827 | | | 790 | | | 4.7 | | | 2,434 | | | 2,304 | | | 5.7 | | | | | | | | |
| Landing fees and other rents | 176 | | | 176 | | | 0.1 | | | 518 | | | 499 | | | 3.8 | | | | | | | | |
| Depreciation and amortization | 165 | | | 155 | | | 6.4 | | | 487 | | | 462 | | | 5.5 | | | | | | | | |
| Aircraft rent | 21 | | | 33 | | | (37.0) | | | 73 | | | 99 | | | (26.2) | | | | | | | | |
| Sales and marketing | 81 | | | 80 | | | 1.0 | | | 245 | | | 237 | | | 3.2 | | | | | | | | |
| Maintenance, materials and repairs | 160 | | | 168 | | | (4.8) | | | 442 | | | 512 | | | (13.7) | | | | | | | | |
| Special items | 27 | | | 33 | | | (17.3) | | | 590 | | | 168 | | | NM (1) | | | | | | | |
| Other operating expenses | 362 | | | 373 | | | (3.0) | | | 1,078 | | | 1,064 | | | 1.4 | | | | | | | | |
| Total operating expenses | 2,403 | | | 2,509 | | | (4.2) | | | 7,702 | | | 7,453 | | | 3.4 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OPERATING LOSS | (38) | | | (156) | | | (75.9) | | | (700) | | | (163) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Operating margin | (1.6) | % | | (6.6) | % | | 5.0 | | pts. | (10.0) | % | | (2.2) | % | | (7.8) | | pts. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | | | | |
| Interest expense | (100) | | | (53) | | | 89.0 | | | (215) | | | (145) | | | 47.7 | | | | | | | | |
| Interest income | 30 | | | 19 | | | 55.0 | | | 66 | | | 50 | | | 34.5 | | | | | | | | |
| Capitalized interest | 3 | | | 5 | | | (32.3) | | | 12 | | | 14 | | | (17.2) | | | | | | | | |
| Gain (loss) on investments, net | (2) | | | — | | | NM | | (25) | | | 6 | | | NM | | | | | | | |
| Gain on debt extinguishments | 22 | | | — | | | NM | | 22 | | | — | | | NM | | | | | | | |
| Other | 7 | | | 11 | | | (41.8) | | | 26 | | | 14 | | | 91.1 | | | | | | | | |
| Total other expense | (40) | | | (18) | | | NM | | (114) | | | (61) | | | (84.1) | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| LOSS BEFORE INCOME TAXES | (78) | | (174) | | | (55.3) | | | (814) | | | (224) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Pre-tax margin | (3.3) | % | | (7.4) | % | | 4.1 | | pts. | (11.6) | % | | (3.1) | % | | (8.5) | | pts. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Income tax benefit | 18 | | | 21 | | | (17.8) | | | 63 | | | 17 | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| NET LOSS | $ | (60) | | | $ | (153) | | | (60.9) | | | $ | (751) | | | $ | (207) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| LOSS PER COMMON SHARE | | | | | | | | | | | | | | | | | | |
| Basic | $ | (0.17) | | | $ | (0.46) | | | | | $ | (2.18) | | | $ | (0.63) | | | | | | | | | | |
| Diluted | $ | (0.17) | | | $ | (0.46) | | | | | $ | (2.18) | | | $ | (0.63) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | |
| Basic | 346.9 | | | 333.3 | | | | | 344.0 | | | 331.0 | | | | | | | | | | |
| Diluted | 346.9 | | | 333.3 | | | | | 344.0 | | | 331.0 | | | | | | | | | | |
(1) Not meaningful or greater than 100% change.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| JETBLUE AIRWAYS CORPORATION |
| COMPARATIVE OPERATING STATISTICS |
| (unaudited) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | |
| (percent changes based on unrounded numbers) | | | | | | | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | |
| Revenue passengers (thousands) | | | | | | | 10,596 | | | 10,911 | | | (2.9) | | | 30,556 | | | 32,309 | | | (5.4) | | |
| Revenue passenger miles (RPMs) (millions) | | | | | | | 14,491 | | | 14,777 | | | (1.9) | | | 41,685 | | | 42,950 | | | (2.9) | | |
| Available seat miles (ASMs) (millions) | | | | | | | 16,740 | | | 17,362 | | | (3.6) | | | 49,940 | | | 51,484 | | | (3.0) | | |
| Load factor | | | | | | | 86.6 | % | | 85.1 | % | | 1.5 | | pts. | 83.5 | % | | 83.4 | % | | 0.1 | | pts. |
Aircraft utilization (hours per day) (1) | | | | | | | 10.2 | | | 10.7 | | | (4.7) | | | 10.2 | | | 10.9 | | | (6.4) | | |
| | | | | | | | | | | | | | | | | | |
| Average fare | | | | | | | $ | 207.46 | | | $ | 201.73 | | | 2.8 | | | $ | 213.31 | | | $ | 211.77 | | | 0.7 | | |
| Yield per passenger mile (cents) | | | | | | | 15.17 | | | 14.89 | | | 1.9 | | | 15.64 | | | 15.93 | | | (1.8) | | |
| Passenger revenue per ASM (cents) | | | | | | | 13.13 | | | 12.68 | | | 3.6 | | | 13.05 | | | 13.29 | | | (1.8) | | |
| Operating revenue per ASM (cents) | | | | | | | 14.13 | | | 13.55 | | | 4.3 | | | 14.02 | | | 14.16 | | | (1.0) | | |
| Operating expense per ASM (cents) | | | | | | | 14.35 | | | 14.45 | | | (0.7) | | | 15.42 | | | 14.48 | | | 6.5 | | |
Operating expense per ASM, excluding fuel (cents) (2) | | | | | | | 10.62 | | | 10.13 | | | 4.8 | | | 10.48 | | | 9.96 | | | 5.2 | | |
| | | | | | | | | | | | | | | | | | |
| Departures | | | | | | | 80,037 | | | 85,971 | | | (6.9) | | | 241,161 | | | 262,488 | | | (8.1) | | |
| Average stage length (miles) | | | | | | | 1,298 | | | 1,253 | | | 3.6 | | | 1,290 | | | 1,223 | | | 5.5 | | |
| Average number of operating aircraft during period | | | | | | | 286 | | | 283 | | | 1.2 | | | 286 | | | 281 | | | 1.8 | | |
| Average fuel cost per gallon | | | | | | | $ | 2.67 | | | $ | 3.04 | | | (12.2) | | | $ | 2.83 | | | $ | 3.11 | | | (9.0) | | |
| Fuel gallons consumed (millions) | | | | | | | 219 | | | 230 | | | (5.1) | | | 647 | | | 677 | | | (4.4) | | |
| Average number of full-time equivalent crewmembers | | | | | | | 19,788 | | | 20,661 | | | (4.2) | | | 20,036 | | | 20,706 | | | (3.2) | | |
| | | | | | | | | | | | | | | | | | |
(1) Includes aircraft temporarily removed from service, including aircraft impacted by the Pratt & Whitney engine groundings and lack of engine availability. (2) Refer to Note A at the end of our Earnings Release for more information on this non-GAAP financial measure. |
| | | | | | | | | | | |
| JETBLUE AIRWAYS CORPORATION |
| SELECTED CONSOLIDATED BALANCE SHEET DATA |
| (in millions) |
| September 30, 2024 | | December 31, 2023 |
| (unaudited) | | |
| Cash and cash equivalents | $ | 2,594 | | | $ | 1,166 | |
| Total investment securities | 1,508 | | | 564 | |
| Total assets | 16,627 | | | 13,853 | |
| Total debt | 8,231 | | | 4,716 | |
| Stockholders' equity | 2,644 | | | 3,337 | |
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Earnings Release. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Earnings Release and shows a reconciliation of each non-GAAP financial measure used in this Earnings Release to the most directly comparable GAAP financial measure.
With respect to JetBlue’s CASM Ex-Fuel (1) guidance and EBIT (2) targets, JetBlue is not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial performance measures beyond our control, such as interest rates and fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items.
(2) EBIT is a non-GAAP measure that excludes interest and income taxes from net income (loss).
Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-fuel")
CASM is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact.
We believe Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines.
For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit-related costs, union contract costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three and nine months ended September 30, 2023, special items included Spirit-related costs and union contract costs.
The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL |
| (unaudited) |
| Three Months Ended September 30, | |
| $ | | | | Cents per ASM | | | | | | |
| | | | | | | | | | |
| ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | |
| Total operating expenses | $ | 2,403 | | $ | 2,509 | | (4.2) | | | 14.35 | | 14.45 | | | (0.7) | | | | | |
| Less: | | | | | | | | | | | | | | | |
| Aircraft fuel | 584 | | 701 | | (16.8) | | | 3.49 | | 4.04 | | | (13.7) | | | | | |
| Other non-airline expenses | 14 | | 16 | | (10.7) | | | 0.08 | | 0.09 | | | (7.4) | | | | | |
| Special items | 27 | | 33 | | (17.3) | | | 0.16 | | 0.19 | | | (14.3) | | | | | |
| Operating expenses, excluding fuel | $ | 1,778 | | $ | 1,759 | | 1.1 | | | 10.62 | | 10.13 | | | 4.8 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, | | | | | | | | |
| $ | | | | Cents per ASM | | | | |
| | | | | | | | | | | |
| ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | | | | | |
| Total operating expenses | $ | 7,702 | | $ | 7,453 | | 3.4 | | | 15.42 | | | 14.48 | | | 6.5 | | | | | | | | | |
| Less: | | | | | | | | | | | | | | | | | | | |
| Aircraft fuel | 1,835 | | 2,108 | | (12.9) | | | 3.67 | | | 4.09 | | | (10.3) | | | | | | | | | |
| Other non-airline expenses | 46 | | 49 | | (5.7) | | | 0.09 | | | 0.09 | | | (2.8) | | | | | | | | | |
| Special items | 590 | | 168 | | NM (1) | | 1.18 | | | 0.33 | | | NM | | | | | | | | |
| Operating expenses, excluding fuel | $ | 5,231 | | $ | 5,128 | | 2.0 | | | 10.48 | | | 9.96 | | | 5.2 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(1) Not meaningful or greater than 100% change.
Operating Expense, Operating Loss, Adjusted Operating Margin, Pre-tax Loss, Adjusted Pre-tax Margin, Net Loss and Loss per Share, excluding Special Items, Gain (Loss) on Investments and Gain on Debt Extinguishments
Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items.
For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit-related costs, union contract costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three and nine months ended September 30, 2023 special items included Spirit-related costs and union contract costs.
Certain net gains and losses on our investments and the gain on debt extinguishments were also excluded from our September 30, 2024 and 2023 non-GAAP results.
We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
| | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS |
| (unaudited) |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| (in millions except percentages) | 2024 | | 2023 | | 2024 | | 2023 |
| Total operating revenues | $ | 2,365 | | | $ | 2,353 | | | $ | 7,002 | | | $ | 7,290 | |
| | | | | | | |
| RECONCILIATION OF OPERATING EXPENSE | | | | |
| Total operating expenses | $ | 2,403 | | | $ | 2,509 | | | $ | 7,702 | | | $ | 7,453 | |
| Less: Special items | 27 | | | 33 | | | $ | 590 | | | $ | 168 | |
| Total operating expenses excluding special items | $ | 2,376 | | | $ | 2,476 | | | $ | 7,112 | | | $ | 7,285 | |
| Percent change | (4.1) | % | | | | (2.4) | % | | |
| | | | | | | |
| RECONCILIATION OF OPERATING LOSS | | | | | | |
| Operating loss | $ | (38) | | | $ | (156) | | | $ | (700) | | | $ | (163) | |
| Add back: Special items | 27 | | | 33 | | | 590 | | | 168 | |
| Operating income (loss) excluding special items | $ | (11) | | | $ | (123) | | | $ | (110) | | | $ | 5 | |
| | | | | | | |
| RECONCILIATION OF ADJUSTED OPERATING MARGIN | | | | | | |
| Operating margin | (1.6) | % | | (6.6) | % | | (10.0) | % | | (2.2) | % |
| | | | | | | |
| Operating income (loss) excluding special items | $ | (11) | | | $ | (123) | | | $ | (110) | | | $ | 5 | |
| Total operating revenues | 2,365 | | | 2,353 | | | 7,002 | | | 7,290 | |
| Adjusted operating margin | (0.4) | % | | (5.2) | % | | (1.6) | % | | 0.1 | % |
| | | | | | | |
| RECONCILIATION OF PRE-TAX LOSS | | | | | | |
| Loss before income taxes | $ | (78) | | | $ | (174) | | | $ | (814) | | | $ | (224) | |
| Add back: Special items | 27 | | | 33 | | | 590 | | | 168 | |
| Less: Gain (loss) on investments, net | (2) | | | — | | | (25) | | | 6 | |
| Less: Gain on debt extinguishments | 22 | | | — | | | 22 | | | — | |
| Loss before income taxes excluding special items, gain (loss) on investments and gain on debt extinguishments | $ | (71) | | | $ | (141) | | | $ | (221) | | | $ | (62) | |
| | | | | | | |
| RECONCILIATION OF ADJUSTED PRE-TAX MARGIN | | | | | | |
| Pre-tax margin | (3.3) | % | | (7.4) | % | | (11.6) | % | | (3.1) | % |
| | | | | | | |
| Loss before income taxes excluding special items | $ | (71) | | | $ | (141) | | | $ | (221) | | | $ | (62) | |
| Total operating revenues | 2,365 | | | 2,353 | | | 7,002 | | | 7,290 | |
| Adjusted pre-tax margin | (3.0) | % | | (6.0) | % | | (3.2) | % | | (0.9) | % |
| | | | | | | |
| RECONCILIATION OF NET LOSS | | | | | | |
| Net loss | $ | (60) | | | $ | (153) | | | $ | (751) | | | $ | (207) | |
| Add back: Special items | 27 | | | 33 | | | 590 | | | 168 | |
| Less: Income tax benefit related to special items | 6 | | | 9 | | | 14 | | | 30 | |
| Less: Gain (loss) on investments, net | (2) | | | — | | | (25) | | | 6 | |
| Less: Income tax benefit (expense) related to gain (loss) on investments, net | — | | | — | | | 6 | | | (1) | |
| Less: Gain on debt extinguishments | 22 | | | — | | | 22 | | | — | |
| Less: Income tax expense related to gain on debt extinguishments | (5) | | | — | | | (5) | | | — | |
| Net loss excluding special items, gain (loss) on investments and gain on debt extinguishments | $ | (54) | | | $ | (129) | | | $ | (173) | | | $ | (74) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED) |
| (unaudited) |
| | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| CALCULATION OF LOSS PER SHARE | 2024 | | 2023 | | 2024 | | 2023 |
| Loss per common share | | | | | | | |
| Basic | $ | (0.17) | | | $ | (0.46) | | | $ | (2.18) | | | $ | (0.63) | |
| Add back: Special items | 0.07 | | | 0.10 | | | 1.72 | | | 0.51 | |
| Less: Income tax benefit related to special items | 0.02 | | | 0.03 | | | 0.04 | | | 0.08 | |
| Less: Gain (loss) on investments, net | (0.01) | | | — | | | (0.07) | | | 0.02 | |
| Less: Income tax benefit related to gain (loss) on investments, net | — | | | — | | | 0.02 | | | — | |
| Less: Gain on debt extinguishments | 0.06 | | | — | | | 0.06 | | | — | |
| Less: Income tax expense related to gain on debt extinguishments | (0.01) | | | — | | | (0.01) | | | — | |
| Basic excluding special items, gain (loss) on investments and gain on debt extinguishments | $ | (0.16) | | | $ | (0.39) | | | $ | (0.50) | | | $ | (0.22) | |
| | | | | | | |
| Diluted | $ | (0.17) | | | $ | (0.46) | | | $ | (2.18) | | | $ | (0.63) | |
| Add back: Special items | 0.07 | | | 0.10 | | | 1.72 | | | 0.51 | |
| Less: Income tax benefit related to special items | 0.02 | | | 0.03 | | | 0.04 | | | 0.08 | |
| Less: Gain (loss) on investments, net | (0.01) | | | — | | | (0.07) | | | 0.02 | |
| Less: Income tax benefit related to gain (loss) on investments, net | — | | | — | | | 0.02 | | | — | |
| Less: Gain on debt extinguishments | 0.06 | | | — | | | 0.06 | | | — | |
| Less: Income tax expense related to gain on debt extinguishments | (0.01) | | | — | | | (0.01) | | | — | |
| Diluted excluding special items, gain (loss) on investments and gain on debt extinguishments | $ | (0.16) | | | $ | (0.39) | | | $ | (0.50) | | | $ | (0.22) | |
CONTACTS
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications
Tel: +1 718 709 3089
corpcomm@jetblue.com
Ex 99.2 - Investor Update
Investor Update: October 29, 2024
This update provides JetBlue’s investor guidance for the fourth quarter ending December 31, 2024 and full year 2024.
| | | | | | | | |
Fourth Quarter and Full Year 2024 Outlook | Estimated 4Q 2024 | Estimated FY 2024 |
| | |
| Capacity and Revenue | | |
| Available Seat Miles ("ASMs") Year-Over-Year | (7.0%) - (4.0%) | (4.5%) - (2.5%) |
| Revenue Year-Over-Year | (7.0%) - (3.0%) | (5.0%) - (4.0%) |
| Expense | | |
CASM Ex-Fuel (1) Year-Over-Year | 13.0% - 15.0% | 7.0% - 8.0% |
| | |
Fuel Price per Gallon (2), (3) | $2.50 - $2.65 | $2.75 - $2.80 |
| | |
| Interest Expense | $155 - $165 million | $370 - $380 million |
| Capital Expenditures | ~$450 million | ~$1.6 billion |
(1) Non-GAAP financial measure; refer to Note A for further details on non-GAAP forward looking information.
(2) Includes fuel taxes, hedges and other fuel fees.
(3) JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its current quarter. Fuel price is based on forward curve as of October 11, 2024.
1
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update
Fuel Hedges
As of September 30, 2024, JetBlue’s advanced fuel derivative contracts are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | Gallons | | Estimated Percentage of Consumption | | Price |
| | | |
| 4Q24 | | 42 million | | 20% | | USGC Jet bull call spreads at an average strike price of $2.52/gal x $2.77/gal |
FY24 (1) | | 207 million | | 24% | | USGC Jet bull call spreads at an average strike price of $2.58/gal x $2.83/gal |
(1) Includes 165 million of fuel gallons hedged in the first three quarters of 2024.
Order Book
As of September 30, 2024, JetBlue’s operating fleet was comprised of 130 Airbus A320 aircraft, 99 Airbus A321, 38 Airbus A220 and 20 Embraer E190 aircraft, for a total of 287 aircraft. This total includes aircraft that have been temporarily removed from service, including 11 aircraft grounded as of September 30, 2024, due to the required removal of certain Pratt & Whitney engines for inspection and lack of engine availability. All aircraft temporarily removed from service are expected to return to operation in the future.
JetBlue’s contractual aircraft deliveries for full year, as of September 30, 2024:
| | | | | | | | | | | | |
| | |
| Year | A220 | A321NEO | TOTAL (1) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
2024 (2) | 20 | 7 | 27 | |
| 2025 | 20 | 4 | 24 | |
| 2026 | 20 | — | 20 | |
| 2027 | 5 | — | 5 | |
| 2028 | 7 | — | 7 | |
| Thereafter | 4 | 44 | 48 | |
| | | | |
(1) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.
(2) Includes eight aircraft delivered in 1Q 2024, six delivered in 2Q 2024 and six delivered in 3Q 2024.
JetBlue’s contractual aircraft return schedule as of September 30, 2024:
| | | | | | | | | | | | |
| | |
| Year | A320 (1) | E190 | TOTAL | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| 2024 | (2) | (16) | (18) | |
| 2025 | (5) | (7) | (12) | |
| | | | |
(1) Does not include aircraft purchased off lease.
2
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update
Forward Looking Information
This Investor Update contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Investor Update are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Investor Update include, without limitation, statements regarding our outlook and future results of operations and financial position, our order book and related assumptions, and our aircraft return schedule. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Investor Update, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this Investor Update might not occur. Our forward-looking statements speak only as of the date of this Investor Update. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
3
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Investor Update. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies.
With respect to JetBlue’s CASM Ex-Fuel (1) guidance , we are not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial measures beyond our control, such as fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items.
4
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
1 3Q24 Earnings Presentation October 29, 2024
2 Safe Harbor This Presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “expects,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “goals,” “targets” or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Presentation include, without limitation, statements regarding our outlook and future results of operations and financial position, including our expected return to profitability, expectations with respect to our headwinds, our product offerings, and our business strategy and plans and objectives for future operations, including JetForward initiatives. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Presentation, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this presentation might not occur. Our forward-looking statements speak only as of the date of this Presentation. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. 2
3 3Q24 Earnings Joanna Geraghty Chief Executive Officer 3
4 Strong 3Q24 Performance Led by Improved Operational Reliability and Positive Unit Revenue Met or exceeded all 3Q guidance metrics Better operational reliability drove a 12 pt. improvement to on-time performance (1) and double digit improvement in Net Promoter Score (NPS) year-over-year (YoY) 3Q24 adjusted operating margin (2) of (0.4%), five points better than July expectations and 3Q23, supported by: • Strong 3Q unit revenue performance bolstered by continued success of 2024 revenue initiatives, which have ramped to ~$275M of the ~$300M annual target • Operational efficiencies, as well as a shift of timing of expenses, drove a CASM ex-Fuel (2) beat of ~two points below midpoint of our initial 3Q guide (3) • Fuel price moderated down 23 cents from initial guidance (3) Continued progress on the roll-out and implementation of JetForward 3Q24 (1) On-time performance defined as arrival within 14 minutes of scheduled arrival time (A14). (2) See Appendix A for further details on Non-GAAP measures. (3) Initial guidance as of July 30, 2024. Provided revised guidance on September 5, 2024.
5 JetForward: Our Path to Sustained Profitability Targeting $800-900M (1) in incremental EBIT (2) from 2025 – 2027 ~$175M ~$400M ~$100M ~$175M Reliable & caring service drives choice, satisfaction and cost savings Best East Coast leisure network where our value proposition is positioned to win Products and perks customers value to capture growing share of premium customers A secure financial future that sustains our cost advantage to our peers & restores our balance sheet EBIT Uplift 2025 - 2027 $800 - $900M Four Priority Moves (1) Initiative range is a target and forecasted to include ~$25M of incremental depreciation, amortization and aircraft rent expense from 2025 - 2027. (2) Earnings before interest and taxes. See Appendix A for further details on Non-GAAP measures. Announced To Be Announced Recent Highlights: Announced Effective Even More Space (EMS) merchandising & onboard product enhancements set to launch throughout 2025 Premium co- branded credit card Lounges in JFK expected to open in late 2025 & BOS shortly thereafter Substantially improved A14, NPS, and completion factor YoY Optimized over 20% of prior network through route exits & redeploys Executed Blue Basic baggage policy update Secured ~$3.2B in financing 5
6 Commercial Update and Outlook Marty St. George President 6
7 4Q24 Implied YoY RASM Midpoint Milton Impact Election Impact 4Q24 YoY RASM Midpoint (Adjusted) On Track to Deliver Positive RASM (1) Throughout 2H, Improved Full Year Revenue Guidance Midpoint by a Half Point (1) Operating revenue per available seat mile. (2) Fourth quarter guidance of (7.0%) to (3.0%) YoY for revenue and (7.0%) to (4.0%) YoY for ASMs. 3Q24 Actual YoY RASM CrowdStrike Benefit 3Q24 YoY RASM (Adjusted) ~(1%) ~3% 4.3% 3Q RASM Implied 4Q RASM at Midpoint of Revenue & Capacity Guidance (2) Inflection supported by operational performance, ramp of revenue initiatives and self-help capacity measures • 3Q completion factor improved ~two points YoY and A14 improved ~12 points • Day-of-week and trough-period ‘self-help’ capacity reductions supported YoY unit revenue improvement • Revenue initiatives delivered ~$275M to-date and on track to outperform initial target of ~$300M in 2024 • Premium revenue up double digits YoY in 3Q • CrowdStrike resulted in ~one point of benefit to RASM Adjusted for transitory events, expect ~flat sequential YoY RASM, based on underlying 3Q revenue strength carrying into 4Q • Incremental self-help capacity measures during troughs (October ASMs down ~9% YoY) • Industry capacity moderation expected to continue, particularly in Latin region • Hurricane Milton and election estimated to result in ~two point headwind to RASM • Improved full year revenue guidance midpoint by a half point ~1% ~1% ~3% ~0.5%
8 Financial Update and Outlook Ursula Hurley Chief Financial Officer 8
9 3Q24 Guidance 3Q24 Actual 4Q24 Guidance FY24 Guidance 4.8% 13.0% to 15.0% CASM ex-Fuel(1), (2) YoY Growth On Track to Hit Full-Year CASM Ex-Fuel Commitments (1) 3Q24 guidance represents September 5, 2024 update. Initial 3Q guidance on July 30, 2024 of 6.0% to 8.0% YoY for CASM ex-Fuel. 4Q24, FY24 guidance as of October 29, 2024. (2) Operating expense per available seat mile, excluding fuel, other non-airline operating expenses and special items (“CASM ex-Fuel”); refer to reconciliations of non-GAAP financial measures in Appendix A. (3) YoY ASM growth of (3.6%) in 3Q24 and ASM guidance of (7.0%) – (4.0)% for 4Q 2024 and (4.5%) – (2.5%) for FY 2024. 5.0% to 7.0% Strong 3Q Unit Costs Driven by Operational Execution and Timing • Operational reliability resulted in ~one point of cost efficiencies versus initial July guidance, while timing shift represented an additional ~one point of beat versus initial July guidance Narrowing FY24 CASM ex-Fuel Range to 7.0% – 8.0% • 4Q CASM ex-Fuel range, inclusive of transitory impacts, not indicative of expected CASM ex-Fuel levels in 2025 • Structural cost program expected to hit top of $175 million - $200 million range in 4Q; achieved incremental $24M in 3Q, totaling to $169M year-to-date • JetForward cost transformation program expected to launch next year and drive ~$175M in savings through 2027 Fuel Outlook Appears Favorable, but Remains Volatile • Fuel price improved $0.23 over the third quarter from initial midpoint of $2.90 to $2.67 • Sequential decline of fuel price expected into fourth quarter • 4Q24 fuel consumption hedged opportunistically at 20% and full-year consumption hedged at 24% (3) (3) (3) 7.0% to 8.0% 4Q CASM ex-Fuel – Transitory Impacts ~2.5 pts Maintenance and other expense timing ~2.0 pts Contractual wage-related step-ups ~1.5 pts Cycling 4Q23 one-time credits ~1.0pts Completion factor comp. & Hurricane Milton
10 Taking Steps Toward a Secure Financial Future and Restoring Balance Sheet Health Number One Financial Priority is Achieving Operating Profitability Proactively Managing Our Balance Sheet With Strategic ~$3.2B Financing • 3Q ending liquidity of ~$4.1B, excluding undrawn $600M revolving credit facility • Executed ~$3.2B worth of financing transactions consisting of ~$2.8B of loyalty backed secured notes and a term loan, and new ~$460M convertible notes • Diversified debt mix for more floating rate exposure • Structured with pre-payment options to retain balance sheet flexibility • Convertible note proceeds used to retire ~$425M of 2026 convertible notes • Remaining proceeds to be used for general corporate purposes, including pre-funding 2024 & 2025 capex and providing runway to execute on our multi-year strategy Effectively Managing Fleet Investments for Prudent Capital Management and Capital Light Growth • In July, announced deferral of aircraft from Airbus order book, expected to reduce planned capital expenditures by ~$3.0B through 2029 • Pursuing capital light growth through the extension of ~30 A320 aircraft
116 11
12 (1) See Appendix A for further details on Non-GAAP measures. (2) Fuel hedged 20% for 4Q24; 24% for FY24. (3) Fuel price based on forward curve as of October 11, 2024. Includes fuel taxes, hedges, and other fuel fees. Guidance Estimated 4Q 2024 Estimated FY 2024 Available Seat Miles ("ASMs") Year-over-Year (7.0%) – (4.0%) (4.5%) – (2.5%) Improved midpoint & narrowed range Revenue Year-over-Year (7.0%) – (3.0%) (5.0%) – (4.0%) Improved midpoint & narrowed range CASM ex-Fuel(1) Year-over-Year 13.0% - 15.0% 7.0% - 8.0% Maintained midpoint & narrowed range Fuel Price per Gallon(2), (3) $2.50 - $2.65 $2.75 - $2.80 Improved midpoint & narrowed range Interest Expense $155 - $165 million $370 - $380 million No change Capital Expenditures ~$450 million ~$1.6 billion No change Outlook Summary
13 Appendix
14 Non-GAAP Financial Measures We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Presentation. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. With respect to JetBlue’s CASM Ex-Fuel (1) guidance and EBIT (2) targets, we are not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial performance measures beyond our control, such as interest rates and fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. (1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items. (2) EBIT is a non-GAAP measure that excludes interest and income taxes from net income (loss). Appendix A
15 Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items (“CASM Ex- Fuel”) Operating Expense per Available Seat Mile (“CASM”) is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact. We believe that Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines. For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit-related costs, union contract costs, voluntary opt-out costs, and Embraer E190 fleet transition costs. For the three and nine months ended September 30, 2023, special items included Spirit-related costs and union contract costs. The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented. NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL (unaudited) Three Months Ended September 30, Nine Months Ended September 30, $ Cents per ASM $ Cents per ASM ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) 2024 2023 Percent Change 2024 2023 Percent Change 2024 2023 Percent Change 2024 2023 Percent Change Total operating expenses $ 2,403 $ 2,509 (4.2) 14.35 14.45 (0.7) $ 7,702 $ 7,453 3.4 15.42 14.48 6.5 Less: Aircraft fuel 584 701 (16.8) 3.49 4.04 (13.7) 1,835 2,108 (12.9) 3.67 4.09 (10.3) Other non-airline expenses 14 16 (10.7) 0.08 0.09 (7.4) 46 49 (5.7) 0.09 0.09 (2.8) Special items 27 33 (17.3) 0.16 0.19 (14.3) 590 168 NM (1) 1.18 0.33 NM Operating expenses, excluding fuel $ 1,778 $ 1,759 1.1 10.62 10.13 4.8 $ 5,231 $ 5,128 2.0 10.48 9.96 5.2 (1) Not meaningful or greater than 100% change.
16 Operating expense, operating loss, adjusted operating margin, pre-tax loss, adjusted pre-tax margin, net loss and loss per share, excluding special items and gain (loss) on investments and gain on debt extinguishments Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items. For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit- related costs, union contract costs, voluntary opt- out costs, and Embraer E190 fleet transition costs. For the three and nine months ended September 30, 2023 special items included Spirit- related costs and union contract costs. Certain net gains and losses on our investments and the gain on debt extinguishments were also excluded from our September 30, 2024 and 2023 non-GAAP results. We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented. Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE- TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions except percentages) 2024 2023 2024 2023 Total operating revenues $ 2,365 $ 2,353 $ 7,002 $ 7,290 RECONCILIATION OF OPERATING EXPENSE Total operating expenses $ 2,403 $ 2,509 $ 7,702 $ 7,453 Less: Special items 27 33 590 168 Total operating expenses excluding special items $ 2,376 $ 2,476 $ 7,112 $ 7,285 Percent change (4.1)% (2.4)% RECONCILIATION OF OPERATING LOSS Operating loss $ (38) $ (156) $ (700) $ (163) Add back: Special items 27 33 590 168 Operating income (loss) excluding special items $ (11) $ (123) $ (110) $ 5 RECONCILIATION OF ADJUSTED OPERATING MARGIN Operating margin (1.6) % (6.6)% (10.0) % (2.2)% Operating income (loss) excluding special items $ (11) $ (123) $ (110) $ 5 Total operating revenues 2,365 2,353 7,002 7,290 Adjusted operating margin (0.4) % (5.2)% (1.6) % 0.1 % RECONCILIATION OF PRE-TAX LOSS Loss before income taxes $ (78) $ (174) $ (814) $ (224) Add back: Special items 27 33 590 168 Less: Gain (loss) on investments, net (2) — (25) 6 Less: Gain on debt extinguishments 22 — 22 — Loss before income taxes excluding special items, gain (loss) on investments and gain on debt extinguishments $ (71) $ (141) $ (221) $ (62) RECONCILIATION OF ADJUSTED PRE-TAX MARGIN Pre-tax margin (3.3) % (7.4)% (11.6) % (3.1)% Loss before income taxes excluding special items $ (71) $ (141) $ (221) $ (62) Total operating revenues 2,365 2,353 7,002 7,290 Adjusted pre-tax margin (3.0)% (6.0)% (3.2)% (0.9)% RECONCILIATION OF NET LOSS Net loss $ (60) $ (153) $ (751) $ (207) Add back: Special items 27 33 590 168 Less: Income tax benefit related to special items 6 9 14 30 Less: Gain (loss) on investments, net (2) — (25) 6 Less: Income tax benefit (expense) related to gain (loss) on investments, net — — 6 (1) Less: Gain on debt extinguishments 22 — 22 — Less: Income tax expense related to gain on debt extinguishments (5) — (5) — Net loss excluding special items, gain (loss) on investments and gain on debt extinguishments $ (54) $ (129) $ (173) $ (74)
17 Operating expense, operating loss, adjusted operating margin, pre-tax loss, adjusted pre-tax margin, net loss and loss per share, excluding special items and gain (loss) on investments and gain on debt extinguishments (continued) Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items. For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit- related costs, union contract costs, voluntary opt- out costs, and Embraer E190 fleet transition costs. For the three and nine months ended September 30, 2023 special items included Spirit- related costs and union contract costs. Certain net gains and losses on our investments and the gain on debt extinguishments were also excluded from our September 30, 2024 and 2023 non-GAAP results. We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented. Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, ADJUSTED OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, CALCULATION OF LOSS PER SHARE 2024 2023 2024 2023 Loss per common share Basic $ (0.17) $ (0.46) $ (2.18) $ (0.63) Add back: Special items 0.07 0.10 1.72 0.51 Less: Income tax benefit related to special items 0.02 0.03 0.04 0.08 Less: Gain (loss) on investments, net (0.01) — (0.07) 0.02 Less: Income tax benefit related to gain (loss) on investments, net $ — $ — $ 0.02 $ — Less: Gain on debt extinguishments $ 0.06 $ — $ 0.06 $ — Less: Income tax expense related to gain on debt extinguishments $ (0.01) $ — $ (0.01) $ — Basic excluding special items, gain (loss) on investments and gain on debt extinguishments $ (0.16) $ (0.39) $ (0.50) $ (0.22) Diluted $ (0.17) $ (0.46) $ (2.18) $ (0.63) Add back: Special items 0.07 0.10 1.72 0.51 Less: Income tax benefit related to special items 0.02 0.03 0.04 0.08 Less: Gain (loss) on investments, net (0.01) — (0.07) 0.02 Less: Income tax benefit related to gain (loss) on investments, net — — 0.02 — Less: Gain on debt extinguishments 0.06 — 0.06 — Less: Income tax expense related to gain on debt extinguishments (0.01) — (0.01) — Diluted excluding special items, gain (loss) on investments and gain on debt extinguishments $ (0.16) $ (0.39) $ (0.50) $ (0.22)
18 Contractual Deliveries A220 A321neo Total (1) 2024 (2) 20 7 27 2025 20 4 24 2026 20 - 20 2027 5 - 5 2028 7 - 7 Appendix B: Order Book Contractual Returns A320 Embraer E190 Total 2024 (2) (3) (16) (18) 2025 (5) (7) (12) We continue to explore opportunities to extend lease contracts or purchase aircraft off-lease (1) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028. (2) Includes eight aircraft delivered in 1Q 2024, six delivered in 2Q 2024 and six delivered in 3Q 2024. (3) Does not include aircraft purchased off lease. JetBlue’s contractual aircraft deliveries for full year as of September 30, 2024: JetBlue’s contractual aircraft return schedule as of September 30, 2024:
19 Network Detail – Focused on Optimizing Network for Profitability Note: Illustrative. Fort Lauderdale Los Angeles & Intra-California Northeast to Midcontinent LGA & EWR Optimization 2024 Route Exits
20 Network Detail – Building the Best East Coast Leisure Network (1) Seasonal transatlantic routes and frequency reductions include BOS DUB, AMS, & LGW and JFK EDI, DUB, LGW, & second daily CDG frequency. Note: Illustrative. Additional FrequenciesNew Route Entrances Seasonalizing Mint Fleet Redeploying TATL aircraft in Winter (1) 2024 Route Entries and Additional Frequencies EDI DUB AMS LGW CDG
21 Network Detail – Executed BlueCity Closures BlueCity Closures BlueCity Exit Date (1) Burlington (BTV) January 4, 2024 Baltimore-Washington (BWI) April 30, 2024 Kansas City (MCI) June 12, 2024 Bogota (BOG) June 12, 2024 Lima (LIM) June 12, 2024 Quito (UIO) June 12, 2024 Puerto Vallarta (PVR) June 12, 2024 Charlotte (CLT) October 26, 2024 Minneapolis (MSP) October 26, 2024 San Antonio (SAT) October 26, 2024 Burbank (BUR) October 26, 2024 Tallahassee (TLH) October 27, 2024 Palm Springs (PSP) Already suspended Pointe-a-Pitre (PTP) Already suspended Stewart (SWF) Already suspended 15 BlueCity Closures and 50+ Route Exits (1) Represents final day of service.
22 Network Detail – Planned Route Exits 50+ Route Exits Route Exits Route Exit Date (1) Los Angeles / Cancun – (LAX / CUN) 3-Jan-24 Newark / Miami – (EWR / MIA) 3-Jan-24 New York LaGuardia / Charleston – (LGA / CHS) 3-Jan-24 New York LaGuardia / Nashville – (LGA / BNA) 3-Jan-24 New York LaGuardia / Jacksonville – (LGA / JAX) 4-Jan-24 New York JFK / Burlington – (JFK / BTV) 4-Jan-24 New York LaGuardia / Denver – (LGA / DEN) 30-Mar-24 New York LaGuardia / Sarasota – (LGA / SRQ) 30-Mar-24 Boston / Baltimore-Washington – (BOS / BWI) 30-Apr-24 Fort Lauderdale / Austin – (FLL / AUS) 30-Apr-24 New York JFK / Portland – (JFK / PDX) 30-Apr-24 New York JFK / Puerto Vallarta – (JFK / PVR) 30-Apr-24 New York JFK / San Jose – (JFK / SJC) 30-Apr-24 New York LaGuardia / Fort Myers – (LGA / RSW) 30-Apr-24 Fort Lauderdale / Salt Lake City – (FLL / SLC) 10-Jun-24 Orlando / Salt Lake City – (MCO / SLC) 10-Jun-24 Fort Lauderdale / Atlanta – (FLL / ATL) 12-Jun-24 Fort Lauderdale / Nashville – (FLL / BNA) 12-Jun-24 Fort Lauderdale / Bogota – (FLL / BOG) 12-Jun-24 Fort Lauderdale / Lima – (FLL / LIM) 12-Jun-24 Fort Lauderdale / New Orleans – (FLL / MSY) 12-Jun-24 Fort Lauderdale / Quito – (FLL / UIO) 12-Jun-24 Los Angeles / Las Vegas – (LAX / LAS) 12-Jun-24 Los Angeles / Liberia, CR – (LAX / LIR) 12-Jun-24 Los Angeles / Miami – (LAX / MIA) 12-Jun-24 Los Angeles / Reno – (LAX / RNO) 12-Jun-24 Los Angeles / San Francisco – (LAX / SFO) 12-Jun-24 Route Exits Cont. Route Exit Date (1) Los Angeles / Puerto Vallarta – (LAX / PVR) 12-Jun-24 New York JFK / Detroit – (JFK / DTW) 12-Jun-24 New York JFK / Kansas City – (JFK / MCI) 12-Jun-24 Tampa Bay / Aguadilla, PR – (TPA / BQN) 12-Jun-24 New York LaGuardia / Nassau – (LGA / NAS) 3-Sep-24 Orlando / Los Angeles – (MCO / LAX) 3-Sep-24 Los Angeles / Nassau – (LAX / NAS) 7-Sep-24 Boston / Charlotte – (BOS / CLT) 26-Oct-24 Boston / Minneapolis St Paul – (BOS / MSP) 26-Oct-24 Boston / San Antonio – (BOS / SAT) 26-Oct-24 Los Angeles / Los Cabos – (LAX / SJD) 26-Oct-24 Los Angeles / Salt Lake City – (LAX / SLC) 26-Oct-24 Newark / Los Angeles – (EWR / LAX) 26-Oct-24 Newark / Montego Bay – (EWR / MBJ) 26-Oct-24 New York JFK / San Antonio – (JFK / SAT) 26-Oct-24 New York JFK / Burbank – (JFK / BUR) 26-Oct-24 New York LaGuardia / Atlanta – (LGA / ATL) 26-Oct-24 New York LaGuardia / Tampa Bay – (LGA / TPA) 26-Oct-24 Raleigh Durham / Cancun – (RDU / CUN) 26-Oct-24 Raleigh Durham / Orlando – (RDU / MCO) 26-Oct-24 Fort Lauderdale / Tallahassee – (FLL / TLH) 27-Oct-24 Fort Lauderdale / Guayaquil, EC – (FLL / GYE) 6-Jan-25 Fort Lauderdale / San Diego – (FLL / SAN) 6-Jan-25 Newark / Santo Domingo – (EWR / SDQ) 6-Jan-25 Hartford / Miami – (BDL / MIA) NA New York JFK / Palm Springs – (JFK / PSP) NA New York JFK / Pointe-a-Pitre – (JFK / PTP) NA (1) Represents final day of service.
23 Priority Moves Anchor Our Path to Sustained Profitability Product Reliability Financial Future Introduced preferred seating Enhancing Blue Basic with free carry-on bag Added new loyalty partners Four Priority Moves ~$175M ~$400M ~$100M 2027 Targets Smoothed aircraft delivery stream Multi-year investment in improving on- time performance Deferred ~$3B of capex to 2030s Targeting $800-900M EBIT (2) uplift, evenly realized from 2025 – 2027 Initial organizational & real-estate optimization driving structural cost savings Announced Implemented Illustrative upcoming announcements Network Refocused LAX footprint & exited unprofitable routes ~$175M Puerto Rico growth & new Mint cities Rightsized LGA & redeployed to high performing leisure & VFR (1) Reinvesting in core Northeast & Florida franchises Business & cost transformation program (1) VFR – visiting friends and relatives. (2) See Appendix A for further details on Non-GAAP measures. Executed $3B+ financings ~$800-900M Premium credit card Lounges in JFK and BOS Enhancements to EvenMore
24
v3.24.3
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
JetBlue Airways (NASDAQ:JBLU)
Historical Stock Chart
From Jan 2025 to Feb 2025
JetBlue Airways (NASDAQ:JBLU)
Historical Stock Chart
From Feb 2024 to Feb 2025
